Thinking about joint life insurance with your partner? Here’s what you need to know before choosing between a joint policy and individual cover.
When you’re planning a future with your partner or spouse, whether you’re buying a home, starting a family, or simply building a life together, it makes sense to think about how to protect that future.
Joint Life Insurance vs Single Life Insurance: Which Is Better for Couples?
Life insurance is one way to do just that. And if you’re a couple, you might be wondering: should you get a joint cover or take out individual cover instead?
It’s a common question, but the answer depends on a few key factors, like your finances, your lifestyle, and what you want the policy to do. In this guide, we’ll walk you through the ins and outs of joint life insurance, weigh up the pros and cons, and help you figure out if it’s the right option for you.
What is Joint Life Insurance?
Joint life insurance is a single policy that covers two people, usually a couple. It pays out once, typically on the first death, after which the policy ends.
You can also get a second death joint policy, which only pays out after both policyholders have died, but that’s less common and usually used for inheritance planning.
With most standard joint policies, the idea is simple: if one of you dies during the term, the other gets the payout to help cover things like the mortgage, bills, or childcare.
Why Do Couples Choose Joint Cover?
Here are a few reasons why joint life insurance appeals to many couples:
It’s Usually Cheaper
A joint policy often works out cheaper than buying two single policies. That’s because the insurer only expects to pay out once, rather than twice.
It’s Convenient
One application, one policy, one payment. Simple. If you’re looking for an easy solution or just want to tick life insurance off your to-do list quickly, joint cover can be a worthwhile option.
It Covers Shared Responsibilities
If you have a joint mortgage or children together, it makes sense to have cover in place that ensures one of you is protected if the other passes away unexpectedly.
What Are The Downsides to Joint Cover?
While joint cover might seem like the easiest route, there are a few things to think about before signing on the dotted line.
It Only Pays Out Once
Once the policy pays out, say one partner dies, the policy ends. That leaves the surviving partner uninsured. If they want cover after that, they’ll need to apply again, likely at an older age (and possibly in worse health), which could mean higher premiums.
Less Flexibility if You Separate
It’s not something anyone wants to think about when taking out life cover, but break-ups happen. And if you split up, a joint policy can be tricky to unravel. You might need to cancel and start again, which could cost more in the long run.
You Might Not Save as Much as You Think
Yes, joint cover is usually cheaper than taking out two separate policies, but not always by much. Depending on your age, health, and cover amount, the savings could be fairly small. In some cases, two single policies offer better value and flexibility overall.
Do You Need Joint Life Insurance?
Here are a few questions to ask yourself:
1. Do you share financial responsibilities?
If you’ve got a joint mortgage or kids to look after, a joint policy can be a practical way to make sure the surviving partner isn’t left in a financial hole.
2. Are you both in good health and similar in age?
Joint cover tends to work best when both partners are broadly the same age and have similar health profiles. If one of you is much older or has health issues, you might get a better deal with two individual policies.
3. Would one payout be enough?
Think about what would happen if the first partner died and the policy paid out. Would the surviving partner still need cover to support dependants or pay off debts? If yes, single policies might make more sense.
4. How long do you need cover for?
If you’re only looking to protect a mortgage for the next 20 years, joint cover might be perfectly fine. But if you’re thinking long term, like wanting each partner to leave a lump sum behind, a pair of single policies could be a better fit.
Alternatives to Joint Cover
If you’re not sold on the idea of joint life insurance, here are your main options:
- Two Single Policies – Each person takes out their own policy, whether that be term life insurance or whole life insurance. This gives you two potential payouts and more flexibility down the line.
- Joint Policy + Individual Policy – Some people choose a joint policy for mortgage protection and a separate individual policy for other needs like funeral costs or children’s future expenses.
- Critical Illness Cover – Whichever route you take, consider whether you want to add cover for serious illness too, it can offer extra peace of mind if you’re diagnosed with a life-changing condition.
The Pros and Cons of Joint Life Insurance for Couples
Joint life insurance can be a great choice for some couples, especially if you’re just starting out, watching your budget, and want simple protection for shared financial commitments.
But it’s not always the best long-term solution, particularly if you want flexibility, or if both partners would benefit from individual cover in future.
Before you decide, it’s worth getting quotes for both joint and single policies and weighing up the difference, not just in price, but in how well the cover fits your life now and in the years ahead.
Still unsure what’s best? A qualified adviser or comparison site can help you find the right cover for your needs.
Jessi is the creative mind behind The Coffee Mom, a popular blog that combines parenting advice, travel tips, and a love for all things Disney. As a trusted Disney influencer and passionate storyteller, Jessi’s authentic insights and relatable content resonate with readers worldwide.